The real estate market is a place where people can make a lot of money. When you’re working in property, something everybody wants and often needs, you’re going to have a huge client base to work with. But you’re also going to have many more competitors than other sectors, and that makes it a dangerous market for a startup to be in.
So that’s when businesses look to other areas to establish a reputation. We can immediately understand that everyone is looking to make money in their career. But of course, as we stated, when you’re an estate agent, or someone simply looking to invest, you’re going to have a harder time than most. Housing is extremely expensive to buy, renovate, keep on the real estate ladder, and difficult to get rid of after every preparatory move you’ve made.
But is heading abroad with your investment plans really something we should do? Are the markets in other countries as lucrative as they’re always claimed to be? Is it the right move for your business, in its foundation stage and desperately looking to expand? Let’s explore a few of these options below.
There’s More Opportunities
There’s been a lot of market crashes in the world recently. And this means there’s a lot of opportunities for business to move in on, especially if you’re a foreign operator. It’s a way for these countries to start generating revenues again, and strengthening ties with other countries around the world. Immediately you have the market at your service, compared to somewhere where it’s already strongly established.
It’s also good for you as a business. If you’re buying and selling in your own country, of course you’re going to be making a profit. But you’re only going to be able to sell to a specific set of people, and at the right times. When you’ve got some property abroad to sell off or rent out at the same time as working in your own market, there’s less chance of a January slump and increased profits on the already incredible baseline you see during the summer.
If you diversify what you can sell, you’re going to reach more corners of the market, as long as you know you have the legal requirements and the funds to do so. If you’ve already been able to sell in your current country, you’ve got a good prediction for whether or not you’re going to be able to sell internationally.
International Rules the Stock Market
There’s a lot of stock out there, and diversifying your portfolio is something a lot of people need to do to make sure they stay in the game. And when it comes to rising values in terms of stock lines to invest in, the housing market is ruling the roost. Even in your own native country, there’s a good chance you’re currently seeing at least ⅓ of an increase in how much your property is worth.
But across the pond, you’re going to find better prospects. A lot of developers are just waiting for an overseas investor to put in the funds they need to get to work, and when you’ve got all the tools at your disposal already, this is the best outcome you could hope for. So next time you’re face to face with the stock market, it’d be a good idea to start monitoring the housing stock that’s up for sale, as well as the tools and materials that go with it.
It Can Be Cheap to Set Up
This comes under the idea of having more opportunities, but really capitalising on how much cheaper it can be to buy and sell a house in another country will always bring in a bigger profit for you. So conducting your business abroad is going to be cheaper than trying it at home, as long as you’re moving in the right circles. Not only is there many more elements you can factor in as to whether or not someone is going to buy, but there’s a lot more green and brown space to buy up as well. And this is prime for developing your own properties on, whether they be commercial or residential.
Investing in both houses and lands like that of https://www.rumah.com/tanah/dijual can be a great way to build up a business that lasts. You can develop in the way you want, often at prices lower than you’d have to deal with back home because of the exchange rate. Similarly, if you’re buying in an area that doesn’t receive much international attention, you have the chance to carve out your own kind of advertising and monopolise with it.
You Can Factor in Tourism
There’s more and more people travelling these days, thanks to the upgrades in technology and more considerations for tourist wants and needs. Scouring the globe has always been popular for business; bringing new and improved goods and services to the countries that need it most, and pandering to the expectations of someone touching down in another country for the first time.
However, factoring in tourism means you can use the houses you invest in to really make a consistent income flow for your company. Yes, we’re talking about holiday homes. It’s a popular market, and usually the first one anyone thinks about when choosing to buy property abroad. And that means you need to make sure you’re getting the best deal you can, as well as choosing a prominent location to get set up in. Of course there’s the huge tourist traps of France and Spain to choose, but going a little more out of the way of central Europe can reveal a treasure trove.
Places like Cyprus are full of sun, sand, and sea, and are much more to the East than the common holiday sites. That means the prices are going to be lower, and there’s already a good established market for holiday makers without the need for competition. The same can be said of Greece: with plenty of islands for you and your clients to explore, as well as a long history of tourism behind them. Use this huge tourism market already in place for advantage.
How Does That Compare to the US?
The US is seeing a bit of a downturn all across the board when it comes to people wanting to buy houses. More and more students and young professionals are choosing to stay at home, or finding apartments in suburban neighborhoods to avoid the astronomical prices of the bigger cities. When your customer base is already shopping against your best interests, it’s going to be hard to afford your tools and materials for further developments. And it’s not just you that’s experiencing this difficulty to stock up your inventory. An interesting infographic exploring the situation can be found at https://www.trulia.com/blog/inventory-myth-busting.
There’s a huge demand for mortgages on the market currently, and less and less generations of people can afford the usual amounts of over $30,000 that they need to put down a payment. So with the economy at a low point, and money stabilising slowly, there’s not much out there that the current buying generation can afford.
The real estate market abroad is going to be a lot more lucrative than trying to make a go of it at home, especially if you’re a new business. Of course this differs from region to region, but there’s always a general trend to pay attention to.